paid dues letter

Started by CarolB14 • 7 replies • 7568 views

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CarolB14 (Michigan)
Posts: 1

Posted:

I have a bank requesting a letter stating that the dues are up to date and paid. Is there an example of this letter? I wish to include the proper information needed.

KerryL1 (California)
Posts: 14,550

Posted:

Are you asking as a homeowners? Or as someone, a Board officer, for instance, who needs to provide this info to the bank?

LarryB13 (Arizona)
Posts: 4,099

Posted:

Quote:

Posted By CarolB14 on 12/18/2014 8:58 AM
I have a bank requesting a letter stating that the dues are up to date and paid. Is there an example of this letter? I wish to include the proper information needed.

I am not personally familiar with these but I believe they are often referred to as "Estoppel Letters." My understanding was that they usually come from an escrow company and the request for the information is generated when a home is sold or refinanced.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Our Property Management company provides Estoppel letters. I believe there is a nominal charge.

RichardP13 (California)
Posts: 1,767

Posted:

This might help you.

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BillH10 (Texas)
Posts: 1,217

Posted:

We have received requests for such letters. Upon asking what information the requesting party would like to see depicted, the response has been they would like to see a statement of the account balance over the past 12-36 months, the length of time is apparently determined by their internal policies. That information is easily generated from the property owner QuickBooks account and is e-mailed to the requesting party. We do not charge for this service unless the request requires actions such as retrieving records from the off site storage location, reproduction, analysis, preparation of spreadsheets, or similar activities. In such cases we charge the association clerical time, mileage, reproduction costs, etc. Those expenses are subsequently billed back to the property owner.

The example posted by Richard in California contains more information than we normally provide, some of the information in his example is included in the Resale Certificate package. However, we would provide similar information, if requested.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Carol,

I started getting requests like this last year for refinancing.

I've attached a word document showing the basic form letter I developed for those responses.

Hope it helps.

Tim

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NpS (Pennsylvania)
Posts: 4,216

Posted:

Note that these are called Estoppel Letters for a reason. If the letter does not include ALL amounts owed to the HOA, then anyone (other than the owner) who relies on the letter, can estop (prevent) the HOA from collecting the missing amount.

So make sure that the contents are accurate. These letters carry consequences.

Sikubali jukumu. Read all posts at your own risk.

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